Consider an economy with two consumers, Alice and Bob, and two goods

Subject:EconomicsPrice:3.86 Bought12

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Consider an economy with two consumers, Alice and Bob, and two goods. The total amount of good 1 is x₁ = 50 and the total amount of good 2 is x₂ = 75.

Alice has the utility function u_A(x^A₁, x^A₂) = (x^A₁)^1/4(x^A₂)^1/2 and Bob’s utility function is u_B(x^B₁, x^B₂) = (x^B₁)^0.5(x^B₂)^0.5

1. Find the demand functions for Alice and Bob.